LVMH Louis Vuitton Moet Hennessy.

Fair Pay & Worker Respect

As a large-scale global manufacturer and retailer with a vast workforce and complex supply chain, LVMH is inherently subject to the challenges of maintaining fair labor practices and worker safety across its diverse operations. LVMH demonstrates strong internal performance metrics alongside significant supply chain challenges. **Internal Workforce:** The company reports that 100% of its employees receive at least a 'decent' wage, with 99.92% compliance with Fair Wage Network principles.

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In 2024, it launched its first employee share ownership plan (LVMH Shares) with a 35% subscription rate among eligible staff.

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Employee engagement is high, with a 93% pride-of-work score and a 76% participation rate in its global pulse survey.

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Health and safety coverage is robust, with 97% of employees covered by management systems and €268 million invested in working conditions in 2024.

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The reported workplace accident frequency rate (TRIR equivalent) is 4.06.

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Turnover was recorded at 23.3% in 2021, which is stable for the retail/luxury sector but higher than some direct competitors like Hermès.

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**Labor Violations & Supply Chain:** The company faces scrutiny regarding its subcontractor network. In 2024, an Italian subsidiary of Dior was placed under judicial administration following an investigation into 'sweatshop-like' conditions where subcontractors were paid as little as €53 for bags retailing for €2,600.

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These subcontractors allegedly bypassed safety devices to increase productivity.

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While LVMH conducted over 4,000 audits in 2024, external benchmarks like KnowTheChain gave the company a low score (6/100) due to concerns over transparency and remedy for wage theft in the broader supply chain.

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Additionally, the Platform Living Wage Financials (PLWF) rated LVMH's wage policies as 'embryonic' (the lowest grade) for three consecutive years (2021–2023), contrasting with the company's internal 'decent wage' claims.

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Fair Trade & Ethical Sourcing

As a luxury conglomerate with a complex global supply chain involving leather, precious metals, and agricultural raw materials, LVMH is inherently exposed to significant risks regarding ethical sourcing and human rights, requiring active management rather than being inherently positive or negative. LVMH's performance in Fair Trade & Ethical Sourcing is characterized by high levels of traceability in specific high-risk commodities and robust contractual frameworks, contrasted by recent substantiated labor violations in its European supply chain. Regarding traceability, the company has achieved nearly 100% traceability for diamonds, wool, and leather

, with 98-99% of leather purchases having a known country of origin as of 2024

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. While it aims for 100% across all strategic supply chains by 2030

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, current data suggests it has already mapped significant portions to tier 4 for key materials, justifying a tier of -10 for traceability_coverage. For ethical_clause_coverage, the company maintains a Supplier and Business Partner Code of Conduct (updated 2024) that applies to all suppliers, retailers, and partners

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. This universal application to 100% of contracts with automated expectations for compliance aligns with a tier of 60. However, the company faces significant challenges in labor oversight. In 2024, Italian prosecutors investigated suppliers for Dior (an LVMH brand), uncovering "sweatshop-like conditions" at subcontractors

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. This major violation, which LVMH accepted responsibility for, results in a tier of -50 for forced_child_labour_incidents

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. In response to these findings, LVMH pledged to strengthen audits and controls

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. Prior to this, the company's reporting indicated annual audits for tier 1 and yearly reviews for tier 2, placing audit_frequency at -60. While the company has initiatives for supplier diversity (e.g., hiring underprivileged women in Asia), there is insufficient quantitative data to score the supplier_diversity_spend KPI

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Honest & Fair Business

As a luxury conglomerate, LVMH's core business model does not inherently advance or harm honest business practices; its standing is determined by its behavioral record regarding regulatory compliance, transparency, and anti-corruption efforts. LVMH demonstrates a structured approach to business ethics through comprehensive policies, though governance independence and transparency scores show room for improvement. Regarding transparency, the company holds a score of 72.25 on the Fashion Transparency Index, placing it in the -10 tier (70–75 range).

While robust, this indicates some gaps compared to top-tier performers in the industry. Its whistleblower system, the 'LVMH Alert Line,' shows evidence of active usage and effectiveness.

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In 2024, the company received over 1,700 reports, with 65% related to HR matters.

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This high volume of reporting suggests a level of trust and awareness in the system, supporting a tier of 30. For anti-corruption, LVMH published an updated Anti-Corruption Charter in 2024 and conducted extensive training, with 66,824 employees trained on these principles in a single year.

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This auditable compliance program and zero-tolerance policy align with tier 10.

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Governance data reveals that the roles of Chairman and CEO are combined (Bernard Arnault), and the Audit Committee has a 2/3 majority of independent directors rather than being fully independent.

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Based on the provided board data (16 voting members, with a 2/3 independent audit committee and combined leadership), the board conflict-free percentage is estimated near 50-60%, placing it in the -60 tier.

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No evidence was found regarding regulatory fines, financial restatements, or specific customer complaint resolution times in the provided articles.

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Kind to Animals

LVMH's core business relies heavily on the use of animal-derived materials, including exotic skins, leather, wool, and fur, which inherently conflicts with animal welfare standards regarding factory farming and the exploitation of animals for luxury fashion. LVMH (MC) presents a complex profile regarding animal welfare, characterized by robust conservation efforts contrasted with significant criticism of its animal-derived material supply chains. In terms of wildlife conservation, the company scores well (-10) due to its LIFE360 program, which has already regenerated or restored 3.8 million hectares of habitat as of 2024, with a target of 5 million by 2030.

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It maintains a 5-year partnership with People For Wildlife for a 400,000-hectare reserve in Australia.

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However, its sourcing of animal materials remains controversial. While LVMH achieved 100% certification for certain fur types (mink, fox) in 2020 and has a 2025 goal for 100% certification across all pelts, reports from PETA and other NGOs allege extreme cruelty in its exotic skin and fur supply chains, including the use of gassing and electrocution.

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The company's Animal-based Raw Materials Sourcing Charter (2019) sets a framework for the 'five freedoms,' but evidence suggests legacy use of exotic leathers and fur continues without a phase-out plan, leading to a tier of -70 for animal agriculture ethics.

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Regarding animal testing, LVMH's Perfumes & Cosmetics division stopped testing finished products in 1989.

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However, the company admits to testing where legally mandated (e.g., for China or specific regulatory requirements), and external reports suggest approximately 5,000 animals may still be used annually across the broader group or third-party contractors, placing it in the -40 to -50 range for testing volume and policy.

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Public policy engagement is noted through its support of the UN Biodiversity Conference (COP-15) and participation in the ChangeNOW Summit.

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No War, No Weapons

LVMH is a luxury goods conglomerate focused on fashion, spirits, and cosmetics; its core business operations have no inherent connection to the arms industry or military conflict. LVMH (MC) is a luxury goods conglomerate primarily involved in retail and manufacturing of high-end consumer products. Based on the provided evidence, the company has no involvement in arms manufacturing or defense contracts, justifying a tier of 0 for revenue_arms_contracts.

The company demonstrates robust compliance frameworks regarding international conflict and human rights. Its 2024 Code of Conduct and Ethical Requirements documents explicitly mandate compliance with international sanctions and export controls, supporting a tier of -40 for sales_embargoed_regimes (robust compliance controls).

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The company also explicitly aligns itself with the UN Guiding Principles on Business and Human Rights (UNGP) and the UN Global Compact, as noted in its supplier codes and ethical charters, warranting a tier of 10 for UNGP alignment.

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Regarding ethical 'red lines,' LVMH and its subsidiary Bulgari have codified policies that prohibit direct or indirect support to non-state armed groups and public/private security forces that commit abuses.

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This aligns with a tier of 10 for ethical_red_lines_coded, as these policies effectively ban engagement with conventional arms-related actors in their supply chain.

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In the area of conflict minerals, the evidence shows that LVMH (specifically through Bulgari and Richemont-related sourcing policies mentioned in the context of luxury standards) has implemented comprehensive tracing and due diligence in accordance with OECD Guidance for minerals from conflict-affected areas.

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However, the evidence describes these as ongoing commitments and requirements for suppliers rather than a certified 100% conflict-free status, placing it at tier -60 (comprehensive tracing for approximately 45% or more of materials, as the policy is maturing across the group).

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Planet-Friendly Business

As a large-scale luxury conglomerate with a massive global footprint, extensive international logistics, and energy-intensive manufacturing processes, the company faces significant challenges in achieving net-zero operations and mitigating its climate impact, which inherently conflicts with proactive environmental stewardship. LVMH (MC) demonstrates a structured approach to environmental stewardship through its LIFE 360 program, though its massive scale results in a significant absolute carbon footprint.

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**Emissions & Energy:** In 2024, the Group reported total emissions of approximately 7.72 million tCO2e (Scope 1 & 2: 198,370; Scope 3: 7,522,620).

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While Scope 1 and 2 emissions have decreased by 55.1% since 2019, the total footprint places it in the -80 tier.

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The Group has validated SBTi targets and achieved a 71% renewable energy mix.

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Its net-zero target is set for 2050, which lacks the urgency of higher-tier benchmarks.

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**Resource Management:** LVMH shows strong performance in water efficiency with an intensity of 68.6 m³ per million euros of revenue.

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Waste diversion is high, with 76% of operational waste recovered.

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However, the recycled-to-virgin material ratio for packaging and products stands at approximately 33%-41%, and only 11.4% of eligible CapEx is aligned with the EU Taxonomy.

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**Biodiversity & Supply Chain:** The company is a leader in biodiversity, having restored or preserved 3.8 million hectares (targeting 5 million by 2030).

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It has achieved high traceability in leather and diamonds and maintains a zero-deforestation target for 2025 with >90% traceability in key leather chains.

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**Compliance & Justice:** While the company reports no 'significant' fines in its URD, third-party data (Violation Tracker) identifies three specific violations between 2022-2025 totaling over $890,000, including a $775,000 hazardous waste fine for Sephora.

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Climate justice is addressed through funded projects in the Amazon and Congo basins, though these represent a small fraction of total climate spending.

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Respect for Cultures & Communities

As a luxury conglomerate with extensive global supply chains for leather, exotic skins, and precious materials, LVMH faces inherent risks regarding indigenous land rights, biodiversity impacts in sourcing regions, and potential cultural appropriation in fashion design. LVMH’s performance regarding Respect for Cultures & Communities is characterized by a dichotomy between high-profile philanthropic partnerships and documented economic disparities in its indigenous supply chains. On the positive side, the company demonstrates strong heritage protection and local procurement. It was the leading private donor for the restoration of Notre-Dame de Paris

and maintains a five-year partnership with UNESCO (2025–2029) focused on biosphere reserves, involving 80+ initiatives benefiting 1,000+ families.

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In France, 30% of purchases are made locally, and the company supports over 910 social partnerships globally.

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However, significant supply chain community harm is documented in the vicuña fiber trade in Peru (Loro Piana).

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Evidence indicates that while LVMH sells vicuña sweaters for approximately $9,000, the indigenous Lucanas community receives only $280 for the equivalent fiber—a rate that has fallen 36% in the last decade.

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A 2018 study found 80% of the community felt they had not benefited from the trade, despite LVMH's commercial exclusivity.

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This represents a failure in equitable revenue-sharing and has led to isolated community concerns and international media scrutiny. Additionally, Louis Vuitton was accused of cultural appropriation in 2024 regarding traditional Romanian designs.

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While the company has a functional grievance mechanism (LVMH Alert Line in 15 languages), there is no evidence of it being used to resolve these specific community-level economic or cultural disputes.

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The company's FPIC policy is stated, but its application in the Lucanas case is contested by the documented economic outcomes.

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Safe & Smart Tech

As a luxury retail conglomerate, LVMH's core business is not inherently focused on technology development, but its extensive global e-commerce and customer data collection activities make data protection and digital privacy highly relevant to its operations. LVMH's performance in Safe & Smart Tech is characterized by a sophisticated AI ethics framework contrasted by significant recent cybersecurity failures. In AI Ethics Governance, the company scores a 20 due to its collaboration with Stanford University to develop the ARGO (Adaptive RAI Governance) framework, which establishes shared standards and local implementation across its 75 subsidiaries.

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This is supported by the training of 15,000 employees in its 'Data and AI Academy'.

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However, the company's security record is marred by a series of significant breaches in 2025.

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Louis Vuitton Hong Kong suffered a breach affecting approximately 419,000 customer records, exposing names, contact details, and purchase histories.

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Similar incidents were reported at Louis Vuitton UK, Louis Vuitton Korea, and Christian Dior Couture within a 90-day window.

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These repeated incidents across different subsidiaries suggest inconsistent vulnerability management and systemic weaknesses in shared infrastructure, resulting in a -80 for vulnerability management and -70 for breach severity.

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Regarding regulatory compliance, while LVMH maintains standard GDPR and CCPA policies, it is currently under investigation by Hong Kong's Privacy Commissioner (PCPD) for potential delays in breach notification (discovering suspicious activity in June but reporting in July), leading to a -70.

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Encryption and user data control are tiered at 0; while the company uses encryption (notably with Google Cloud) and provides standard privacy dashboards, there is no evidence of these practices exceeding industry norms or being revolutionary.

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Security training is tiered at 10, reflecting the large-scale 'Data and AI Academy' initiative, though specific outcome metrics like phishing click rates were not provided.

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Zero Waste & Sustainable Products

As a luxury conglomerate producing high volumes of leather goods, cosmetics, and spirits, the company's business model inherently relies on resource-intensive manufacturing and packaging, which poses significant challenges to waste reduction and circularity. LVMH demonstrates a mix of advanced circular economy initiatives and significant regulatory setbacks regarding waste management. On the positive side, the company has implemented over 10 distinct waste reduction and circularity initiatives, including 'LVMH Circularity', 'CEDRE' (dismantling perfumes/cosmetics), 'Nona Source' (reselling dormant fabrics), and 'Weturn' (textile recycling).

It has established company-wide targets under the LIFE 360 roadmap for 2023, 2026, and 2030.

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In 2024, the company reported that 33% of materials used in products and packaging were recycled, which is well above industry averages for the luxury sector.

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However, specific product recyclability for customer packaging was reported at 41% for glass and plastic, indicating a developing focus.

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Conversely, the company faces serious challenges in hazardous waste management. Its subsidiary, Sephora, reached a settlement in California for the improper handling and disposal of hazardous waste (damaged/expired cosmetics), resulting in over $775,000 in fines and penalties.

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This constitutes a significant waste disposal violation within the last three years.

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While LVMH offers repair services and recovery through 'repurposed product channels,' these programs are currently established in specific Maisons rather than being universal across the entire 75-brand portfolio.

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Circular design principles are applied across several categories (Fashion, Leather, Beauty) but are not yet standard across all operations.

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The company aims to eliminate fossil-based virgin plastic by 2026, but 2024 data showed 7,224 metric tons were still in use.

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